The United States Attorney's Office for the District of Oregon and
the Portland, Oregon Division of the Federal Bureau of Investigation
announce the sentencing of a couple caught in an FBI sting while trying
to sell approximately $85,000 worth of jewelry to an undercover fence.
DONALD M. MALCOLM, age 46, of Bandon, Oregon, and his wife, DIANNE
MALCOLM, age 57, of Florence, Oregon, were sentenced today for committing
bankruptcy fraud. In August 2001, the MALCOLMS reported to the North
Bend, Oregon police that their residence was burglarized and that the
supposed thief had stolen $80,000 worth of jewelry they had purchased
on credit from Harry Ritchie's Jewelers. This report was false.
The MALCOLMS then filed for bankruptcy in September 2001. In their
bankruptcy petition, the MALCOLMS fraudulently reported that they no
longer had the jewelry because it was stolen. The MALCOLMS later received
a discharge in bankruptcy, including the debt to Harry Ritchie's Jewelers
for the jewelry they falsely reported stolen.
In December 2003, the FBI learned that the MALCOLMS still had the
jewelry and were attempting to fence it. Later that month, an undercover
FBI agent, posing as a fence, met with the MALCOLMS. The MALCOLMS had
the jewelry in their possession. After the MALCOLMS agreed to sell the
jewelry and negotiated a sales price, the FBI arrested them.
In July 2004, the MALCOLMS both pleaded guilty to bankruptcy fraud.
Today, United States District Judge Michael Hogan sentenced each of
the MALCOLMS to one month in prison, to be followed by nine months of
home detention and three years of supervised release. The jewelry was
returned to the victim, Harry Ritchie's Jewelers.
The FBI successfully investigated the case. For more information,
contact Assistant United States Attorney Chris Cardani at 541-465-6771.
